Gelonghui, April 15 | According to CICC's research report, Jingsheng Electromechanical (300316.SH)'s net profit for 23 years was 4.558 billion yuan, +55.9% year-on-year (+50%-70% compared to the forecast), and the high increase in annual performance was in line with expectations. The company has plenty of orders for equipment on hand, and high-quality crucibles are still scarce. Judging that the price of crucibles is expected to remain at ~35,000 yuan/piece (tax included) in 2024, supporting high profitability; at the same time, the company continues to promote the release of production capacity for carbon/tungsten diamond wire and silicon carbide substrates (especially 8 inches). The company continues to expand from photovoltaics to the semiconductor industry chain, with large card position silicon wafer equipment, advanced process equipment, components, etc., and the layout is gradually improving. At the same time, it also focuses on third-generation semiconductor development opportunities, focusing on silicon carbide substrate materials+epitaxial equipment, leading 8-inch technology. The company's silicon carbide substrate production capacity is expected to exceed 1/2 million pieces/month in 24/25. It maintained an outperforming industry rating, but due to the decline in the industry's valuation center, the target price was lowered by 20.4% to 43.00 yuan, which corresponds to 10.1 times the 2024 price-earnings ratio and 8.5 times the 2025 price-earnings ratio. There is 36.2% room for growth compared to the current stock price.